Final Exam-Michigan Life and Health NEWEST
EXAM 2026-2027 COMPLETE 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED
"Maximum benefits" refers to the - CORRECT ANSWER: upper limit of the total lifetime
benefits the insurance company will pay
a 10% exercise tax is normally applied to an early withdrawal from an IRA. according to
HIPAA, this tax will not be applied If the withdrawal is used for medical expenses that exceed__
of the individuals adjusted gross income - CORRECT ANSWER: 7.5%
A change in an insurance application requires - CORRECT ANSWER: an initial made by the
applicant
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilization - CORRECT ANSWER: benefit limits
a dread disease policy is considered to be a type of - CORRECT ANSWER: limited health
insurance policy
a father has a son who is mentally handicapped but not eligible for Medicare. the son is
dependent on his father. under which of the following circumstances can the son remain on the
fathers coverage after the age of 26. - CORRECT ANSWER: with written proof of disability and
dependency
A fee for service health insurance plan will normally cover - CORRECT ANSWER: a disease
a field underwriter's main task is - CORRECT ANSWER: to ensure an applicants medical
information is accurate and complete
,a form of medical health insurance covering the treatment and care of gum disease is called -
CORRECT ANSWER: dental expense insurance
a group disability income plan that pays tax-free benefits to covered employees is considered -
CORRECT ANSWER: fully contributory
a health insurance policy that allows an insurer to change the policy owner's premiums, but not
cancel the policy is called a(n) - CORRECT ANSWER: guaranteed renewable policy
a health insurance policy will typically cover - CORRECT ANSWER: preventative health
services
a hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance - CORRECT ANSWER: dental treatment is needed to repair an injury
A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is
committing which of the following violations? - CORRECT ANSWER: Misrepresentation
a licensee who is required to take continuing education Must include how many ethics
coursework hours - CORRECT ANSWER: 3
a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability? - CORRECT
ANSWER: Disability income rider
a limited payment whole life policy provides - CORRECT ANSWER: lifetime protections
A long term care policy typically provides all of the following levels of care EXCEPT -
CORRECT ANSWER: acute care
, A master contract and certificate of coverage can be found in which type of policy? - CORRECT
ANSWER: group
a Medicare supplement plan can be canceled by the insurer - CORRECT ANSWER: for
nonpayments of premiums
A Medicare Supplement policy is issued in the state of Michigan is required to provide each of
the following EXCEPT - CORRECT ANSWER: It must include outpatient prescription drug
coverage
a non-contributory health insurance plan helps the insurer avoid - CORRECT ANSWER: adverse
selection
A notice of cash surrender value must be sent to a Universal Life policy owner - CORRECT
ANSWER: At least Annually
A partial surrender is allowed in which of the following policies - CORRECT ANSWER:
Universal life
A payment system for health care in which the provider is paid for each service given is called -
CORRECT ANSWER: Fee-for-Service
a person who is a nonsmoker, of average weight, and excellent health would most likely be in
which risk classification? - CORRECT ANSWER: preferred
A pharmacy benefit covers prescription drugs derived from list called a(n) - CORRECT
ANSWER: Drug Formulary
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called - CORRECT ANSWER: A self funded plan
EXAM 2026-2027 COMPLETE 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED
"Maximum benefits" refers to the - CORRECT ANSWER: upper limit of the total lifetime
benefits the insurance company will pay
a 10% exercise tax is normally applied to an early withdrawal from an IRA. according to
HIPAA, this tax will not be applied If the withdrawal is used for medical expenses that exceed__
of the individuals adjusted gross income - CORRECT ANSWER: 7.5%
A change in an insurance application requires - CORRECT ANSWER: an initial made by the
applicant
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilization - CORRECT ANSWER: benefit limits
a dread disease policy is considered to be a type of - CORRECT ANSWER: limited health
insurance policy
a father has a son who is mentally handicapped but not eligible for Medicare. the son is
dependent on his father. under which of the following circumstances can the son remain on the
fathers coverage after the age of 26. - CORRECT ANSWER: with written proof of disability and
dependency
A fee for service health insurance plan will normally cover - CORRECT ANSWER: a disease
a field underwriter's main task is - CORRECT ANSWER: to ensure an applicants medical
information is accurate and complete
,a form of medical health insurance covering the treatment and care of gum disease is called -
CORRECT ANSWER: dental expense insurance
a group disability income plan that pays tax-free benefits to covered employees is considered -
CORRECT ANSWER: fully contributory
a health insurance policy that allows an insurer to change the policy owner's premiums, but not
cancel the policy is called a(n) - CORRECT ANSWER: guaranteed renewable policy
a health insurance policy will typically cover - CORRECT ANSWER: preventative health
services
a hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance - CORRECT ANSWER: dental treatment is needed to repair an injury
A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is
committing which of the following violations? - CORRECT ANSWER: Misrepresentation
a licensee who is required to take continuing education Must include how many ethics
coursework hours - CORRECT ANSWER: 3
a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability? - CORRECT
ANSWER: Disability income rider
a limited payment whole life policy provides - CORRECT ANSWER: lifetime protections
A long term care policy typically provides all of the following levels of care EXCEPT -
CORRECT ANSWER: acute care
, A master contract and certificate of coverage can be found in which type of policy? - CORRECT
ANSWER: group
a Medicare supplement plan can be canceled by the insurer - CORRECT ANSWER: for
nonpayments of premiums
A Medicare Supplement policy is issued in the state of Michigan is required to provide each of
the following EXCEPT - CORRECT ANSWER: It must include outpatient prescription drug
coverage
a non-contributory health insurance plan helps the insurer avoid - CORRECT ANSWER: adverse
selection
A notice of cash surrender value must be sent to a Universal Life policy owner - CORRECT
ANSWER: At least Annually
A partial surrender is allowed in which of the following policies - CORRECT ANSWER:
Universal life
A payment system for health care in which the provider is paid for each service given is called -
CORRECT ANSWER: Fee-for-Service
a person who is a nonsmoker, of average weight, and excellent health would most likely be in
which risk classification? - CORRECT ANSWER: preferred
A pharmacy benefit covers prescription drugs derived from list called a(n) - CORRECT
ANSWER: Drug Formulary
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called - CORRECT ANSWER: A self funded plan
